On 15 April 2014, the European Parliament adopted in plenary session an amended Directive on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities as regards depositary functions, remuneration policies and sanctions (the so-called “UCITS V”). The new rules will considerably strengthen the protection of investors vis-à-vis managers of UCITS funds and their depositaries given that UCITS V has primarily targeted depository liability, the remuneration rules and the sanctions regime for management firms that breach the regulations.

Following the vote in plenary session, the adoption of UCITS V is subject to formal approval by the European Council. The European Securities and Markets Authority must also, in the meantime, come up with technical guidance on implementation of the Directive.